The V1 flow message probably means you have asked cflowd to collect
data for which it needs version-5 flow data to be able to produce, but
have not told your routers that its V5 data that you want from them.
The good news is that at least there's evidence that Netflow data is
arriving at your collection point.

As for the complaint about /usr/local/arts/data/cflowd/flows and the
raw flow file that goes under there, I suggest you check for the
existance and ownership of /usr/local/arts and the user ID that you are
running cflowd with. It sounds likely that the message means just
what it says, that the cflowd process is finding it does not have
persmission to make a directory there for it to put its files into.

Or maybe you need to update your config files to specify a different place
for those files to go?